Costa Rica’s online gambling taxation

05-09-2010

Costa Rica’s finance ministry has presented its draft plans regarding online gambling taxation. The finance ministry of president Laura Chinchilla modified the proposed legislation due to complaints by Costa Rica-based operators. Costa Rica is set to regulate and tax online gambling companies that operate out of the Latin American country.

Gaming commission

The new proposal includes a gaming commission for online gambling. This gambling board would be funded by a regulatory tax of 0.5% per annum. Gross profit determines this regulatory levy. Licenses up to six years will be warranted by the regulator and non-compliance will result in sanctions, Tax-News reports.

Online gambling taxation

Furthermore, the plan encompasses a 15% levy on gross monthly profits. Additionally, operators need to pay a licensing fee of €39.000 per year. It is expected that the new gaming commission will be run by a Supreme Council leaded by the minister of interior and police. Costa Rica police officials believe that the tax revenues are essential to finance the battle against the increasing crime rates.